Analysis of Organizational Change and Leadership in TUI Group

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UNDERSTANDING AND LEADING
CHANGE

TABLE OF CONTENTS
Introduction......................................................................................................................................1
Task 1...............................................................................................................................................2
P1 Compare different organisational examples where there has been an impact of change on
an organisation’s strategy and operations....................................................................................2
P2 Evaluate the ways in which internal and external drivers of change affect leadership, team
and individual behaviours within an organisation.......................................................................4
M1 Assess the different drivers for change in each of the given examples and the types of
organisational change they have affected....................................................................................6
P3 Evaluate measures that can be taken by TUI to minimize the negative impacts of change on
organizational behaviour.............................................................................................................7
M2 Apply appropriate theories and models to critically evaluate organizational response to
change..........................................................................................................................................8
Task 2...............................................................................................................................................9
P4 Explain different barriers for change and determine how they influence leadership decision
making in the TUI........................................................................................................................9
M3 Use force field analysis to analyse the driving and resisting forces and show how they
influence decision-making.........................................................................................................11
Task 3.............................................................................................................................................13
P5 Apply different leadership approaches to dealing with change in range of TUI..................14
M4 Evaluate the extent to which leadership approaches can deliver organizational change
effectively applying appropriate models and frameworks.........................................................17
Conclusion.....................................................................................................................................19
References......................................................................................................................................20

LIST OF FIGURES
Figure 1: PESTEL Analysis.............................................................................................................4
Figure 2: Lewin’s change management model................................................................................8
Figure 3: Porter’s five forces model..............................................................................................11

Introduction
The current report will develop understandings of the organizational change, drives of change
and its impact upon different areas and department in the organization. Report will compare two
medium business organizations where there has been an impact of change on an organisation’s
strategy and operations. Report will discuss impact of different drivers of change on leadership,
team and individual behaviours within the TUI that is the largest leisure, travel and tourism
organization. TUI is planning to implement technological, social responsibility and
environmental concern change. Different measures will be discussed that can minimize negative
impacts of change on the organizational behaviour. Appropriate theories and models will be
discussed for evaluating organizational response to change. Report will also discuss different
barriers to change and leadership approaches to deal with organizational change.
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Task 1
P1 Compare different organisational examples where there has been an impact of change on an
organisation’s strategy and operations.
In the current task, travel and tourism organization has chosen for understanding impact of
change on the organization’s strategy and operations.
Trailfinders is the largest independent owned travel organization that has 31 travel centres in the
UK. It provides various types of travel facilities to tourists such as food, drinks, accommodation,
tour guide and entertainment facility during travel and tour. On the other hand, TUI is also a
largest leisure, travel and tourism organization that owns hotels, travel agencies, cruise ships and
airlines.
For instance, in these organizations, there is change taking place in the technology,
environmental concerns and social responsibility. There are different types of drivers of change
that may impact or force organizations to make changes in organization’s strategy and operations
to deal with change.
Internal Drivers of change
There are several drivers of internal change that includes existing capabilities of human
resources. Employees within the business organization are considered as one of the most
important stakeholders who support best performance of the business activities and therefore
there is greater need for business to focus of on appropriate planning of human resource. In
addition to this, employee satisfaction plays important role in enhancing overall productivity of
the organization therefore there is need of bringing changes in policies related to job satisfaction
and benefits of employees.
External Drivers of change
Changing demand of customers is considered as one of the major drivers of change and therefore
both the travel organizations must focus on bringing changes to their products and services in
terms of their travel packages as per the choices of the customers. Another driver is competition
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among travel sector organizations that demands for bringing innovation in its existing products
and services so that business can gain competitive advantage.
Environmental protection: Environment protection is the main focus for the business
organization for ensuing long-term sustainable development and growth. This driver of change
can force the TUI and Trailfinders organizations to make changes in the organization’s strategy
to protect the environment. These organization needs to be more aware about the environment
protection by minimizing exploitation of natural resources during tour and travel (Benn et.al,
2014).
New technologies: TUI and Trailfinders needs to be updated their technologies as per current
trend and technologies for providing fast and efficient services to customers and facing
competition in the market. They need to update their booking and payment systems by adopting
online booking and electronic payment systems.
Competitive Environment: Day-by-day increasing competition in the travel and tourism industry
is also a one of driver of change that can force the organization to change their business
operations and strategies for facing huge competition. They need to design attractive holiday tour
packages and others services such as food, drinks, accommodation and guide facility for
attractive more customers (Krantz, 2018). They need to use innovative technology like digital
technology for providing fast and efficient booking and payment facility to customers. They need
to change their recruitment, selection and training methods and procedures for appointing skilled
employees to face the competition.
There are some similarities and differences between the Trailfinders and TUI on the basis of
their response towards the change.
Similarities
 They can make change in technology as per current trend and technology by adopting
digital technology for providing fast and efficient services to customers such as digital
marketing, online booking and electronic payment systems (Cummings and Worley,
2014).
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 They can adopt marketing strategy such attractive discounts, gift vouchers, rewards,
combo benefits and other benefits on booking holiday tour packages.
 They can design variety of tour packages such as holiday tour, educational tour, business
tour and leisure tour packages to attract more customers.
Differences
 TUI offers large variety of holiday tour packages and services to customers than others
travel and tourism organizations.
 TUI has online booking website through which customers can book their packages in fast
and efficient manner.
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P2 Evaluate the ways in which internal and external drivers of change affect leadership, team and individual
behaviours within an organisation
Internal drives of change
Internal drivers of change can be includes employees, owners, organizational culture and
strategies and policies that may impact the leadership, team and individuals behaviours within
the organization. Change in the organizational culture may impact positively as well as
negatively on the leadership and employee behaviour (Iniesta et,al, 2015). If TUI has restrictive
policy then it may hinder the performance levels of leaders and employees and vice-versa.
Flexible work culture and environment leads to improve in work efficiency and performance of
employees and their leaders and vice-versa.
External drivers of change
TUI is forced to bring changes in its leadership because of some business environmental factors.
Appropriate relationship with various stakeholders support the leaders to focus on decision
making which in turn influence the behaviour of team and individuals. In addition to this, travel
organization can successfully attract larger base of customers with the help of skilled workforce
and therefore to gain competitive advantage in the market, both the organizations must focus on
changing capabilities of their employees so that team working can be encouraged.
Figure 1: PESTEL Analysis
(Source: www.business-to-you.com, 2016)
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Political environment: Political instability may adversely impact the performance and
behaviours of managers, leaders and employees within the TUI as instability in the political
environment may increase the risk of terrorist attacks, political crises, wars and other hostilities
that may reduce the performance of employees and hence decrease in demand of travel and
tourism.
Economical environment: Economic factors may include economic growth, inflation rate,
interest rate, and exchange rate that may positively as well as adversely impact the behaviours of
management, leadership and employees. Good economic condition of the country will enable the
TUI to make more investments in travel and tourism and also exchange rate may positively of
adversely impact the TUI business (Palmer et.al, 2016). High inflation rate will reduce spending
of customers on travel and tour and vice-versa. For instance, there was economic slowdown
during the year of 2002 and 2003 that negatively impact business of the TUI.
Social environment: Social drivers of change of may include customer needs, preferences, health
consciousness, people lifestyle and age distribution. Demographical and cultural change may
impact the performance and behaviours of managers, leaders and employees and hence
negatively impact the travel and tourism business.
Technological environment: Technological advancement may also impact performance and
behaviour of management and employees in the TUI as they might face difficulty in using digital
technology and tools. TUI has launched virtual tour operators i.e. TOUROPA.COM that can
enable selling tour packages not only online but also through television, call centre and travel
agencies (Barkauskas et.al, 2015).
Environment: Environmental drivers of change include environmental protection laws and
legislations that TUI needs to focus while dealing in travel and tourism services. Global warming
is the major environmental issues so TUI has to exert low carbon from it airlines that may impact
overall customer service and behaviours of management and employees.
Legal environment: This is also the main drivers of change that may impact performance and
behaviours of managers, leaders and employees in the TUI. They needs to follow certain rules
and regulation exist in the country while dealing with customers and providing those travels and
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tourism services. The aviation permit is granted by European Economic Area (EEA) so TUI
needs to operate, own and control under this aviation authority.
M1 Assess the different drivers for change in each of the given examples and the types of organisational
change they have affected.
It is above discussed that there are internal as well as external drivers of change that may impact
the performance and behaviours of management and employees within the organization. Internal
drivers include employee relationships, management, policies, and culture within the
organization. For instance, TUI needs to change its training and rewarding systems for enhancing
efficiency, performance and improving relationship with employees. Organization needs to
change its current culture and have to adopt effective culture that will enhance performance and
productivity of the organization.
Both the organizations are highly influenced by changes in technology that supports the business
organization to take appropriate decisions. For an instance, to meet the demand of customer has
brought changes in their packages that include accommodation services, and food services for
increasing the satisfaction of customer. In this context, businesses must focus on providing
training to their employees so as to get attained with technological changes in much better
manner.
External drivers also has discussed above that includes political, economical, social,
technological, environmental and legal business environment that may positively or adversely
affect the organizational performance and hence force to implement change. Economic and
political instability in the country may force the TUI to change its strategies to attract large
customers for tour and travel by making changes in the tour packages prices and enhancing
customer safety from terrorist attacks and others threats (Barkauskas et.al, 2015). Demographic
and cultural factors will also enable TUI to design tour packages and services as per
requirements of customers. Organization also needs to change its environmental protection
strategies and legal framework for smoothly operating the business.
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P3 Evaluate measures that can be taken by TUI to minimize the negative impacts of change on
organizational behaviour
TUI can follow the effective change management model for implementing and managing the
change effectively and minimizing its negative impacts of change. Organization needs to focus
towards various factors that will contribute in minimizing negative impacts of the change on
travel and tourism business.
Appropriate communication: Communication is the best way to minimise the negative influence
of change on organizational behaviour. Higher authorities within the organization must focus on
communication about changes in terms of technology or organizational structure so that
employees are well aware about their roles and responsibilities as well as need of training so as
to well equip with technological changes. Such type of communication will put positive
influence on organizational behaviour.
Continuous improvement: This includes continuo monitoring of various business activities,
quality of products and services, etc are effective in minimising the negative influence of change
in organizational behaviour. In this context application of Continuous improvement model will
support the business to regular monitor the performance of employees as per the changes in
business structure or operations.
Organizational culture: Effective organizational culture will support in enhancing efficiency,
performance and productivity of the employees that will contribute their efforts in implementing
change and minimizing negative impacts on business productivity and growth of the TUI
(Alvesson and Sveningsson, 2015).
Organizational structure: Negative impact of change can be minimizing by framing effective or
hierarchical structure in the organization. In the hierarchical structure, roles and responsibilities
are effectively distributed among employees and decision-making authority is in few hands that
takes major decisions.
Leadership: Effective leadership will support the TUI in implementing change effectively by
guiding, commanding and motivating employees to perform assigned task in efficient manners.
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By leading and directing employees in right direction, leadership will enable the organization in
minimizing negative impacts.
Employee motivation: Employees are valuable asset for the travel and tourism organization that
perform different activities and contribute in enhancing customer service (Palmer et.al, 2016).
TUI needs to provide motivation to its employees by offering them attractive rewards, incentives
and other benefits. Satisfied employees will contribute their efforts more efficiently during
implementing changes and hence minimize negative impacts.
Analyzing External environment: Negative impacts of change can also be minimized by
analyzing external business environment. Managers needs to conduct market research for
analyzing economical, political, technological, social, environmental and legal environment so
that effective plans and strategies can develop to deal with external environment and hence
minimize negative impacts (Barkauskas et.al, 2015).
M2 Apply appropriate theories and models to critically evaluate organizational response to
change
Figure 2: Lewin’s change management model
(Source: Burnes, 2014)
Lewin’s change management model or theory can be use by the TUI for effectively
implementing changes in the technology, social responsibility and environmental concerns. This
model guides for implementing, performing and managing change effectively and minimize
negative impacts of the change. Lewin’s has defined three stages for executing, performing and
managing change by defining changing state of ice blocks in three stage that include unfreeze,
change and freeze.
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